
Class /_J 

Book . (^ 



CORTlglltly?. 



COFUilCHT DEPOStr. 



BASIC INDUSTRY LIBRARY 



ROBERT MORRIS CLUB 

National Association Credit Men 



Vol. I 



DETROIT, MICHICxAN 
1917 



Copyright 1917 

by the Robert Morris Club 

National Association of Credit Men 

Detroit. Michigan 



/ 



)c:,A-i739«9 



OCT 12 1917 



The Tanning Industry 



Prepared by 

A. Heath Onthaiik 



Nationtd Shawinut Bank 

Boston, Massachusetts 






Table of Contents 

Page 
I. Historical Introduction 7 

II. General Considerations 8 

III. Raw Materials 9 

A. Domestic Sources 9 

B. Foreign Sources 10 

C. Organization of the Domestic Market 12 

D. Organization of the Foreign Market .13 

E. Tanning Materials 17 

IV. Tanning 19 

A. Sole Leather 19 

1. Vegetable Tanning Process 20 

2. Chrome Tanning Process 23 

B. Upper Leather 24 

C. Patent Leather 27 

D. Amount of Product 27 

E. Contract Tanning 28 

F. Costs 29 

G. Tanneries 29 

1. Geographical Distribution 31 

2. Location of Tannery 31 

3. Tannery Construction •32 

4. Tannery Equipment 33 

H. Labor 33 

I. By-Products : 34 

J. Financing 34 

V. Leather Market 36 

A. Organization 36 

B. Domestic Market 37 

C. Foreign Market 38 

D. Sole Cutting 38 

E. Substitutes for Leather 39 



./I 



THE TANNING INDUSTRY 



A* 



I. Historical Introduction 



SO far as it is possible to know, the process of tanning hides and 
skins is as old as mankind itself. The knowledge of this import- 
ant trade was possessed by the ancient Egyptians, for engravings 
on their tombs depict the process of tanning. In China specimens of 
leather have been discovered with other relics which prove them to be 
over three thousand years old. When the European explorers came to 
America they found the Indians using tanned skins and hides for cloth- 
ing and for their wigwams. Thus the story of the first tanner goes 
back beyond the ages of which history has an account. 

Probably the original process of curing skins was that of simply 
cleaning and drying. Then the use of smoke, sour milk, various oils, 
and the brains of the animals themselves was found to improve the 
texture of the leather, and later use was made of certain astringent 
barks and vegetables which effected permanent changes in the texture 
of the skins and stopped decay. The Romans used leather which they 
tanned with oil, alum, and bark, but the present methods of tanning 
were introduced into Europe by the Moors when they conquered Spain. 

The first tanners came to America with the early settlers, and there 
are records of the establishment of tanneries in Virginia and in Lynn, 
Massachusetts, as early as 1630. The growth of the industry in the 
new country is denoted by the fact that in 1650 there were fifty-one 
tanners in Massachusetts Bay Colony. The primitive methods of 
tanning continued in use until 1790, when the use of lime to unloosen 
the hair was introduced. Shortly before the Civil War the use of 
machinery gave the industry in this country an enormous advantage, 
which was increased later by the introduction of chrome tannage. 



THE TANNING INDUSTRY 



II. General Considerations 

Leather may be defined as the skin of an animal, or some part of 
such skin, tanned, tawed, or otherwise dressed for use. 

Tanning is the general term for the process which produces the 
chemical change in the hide or skin, resulting in the formation of 
leather. This chemical change takes place in the following manner: 
the tannin— the main chemical agent — which is in the vegetable 
tanning extract, and the gelatine of the hide have an affinity for each 
other, and when a complete contact is made between the two, the 
necessary chemical change takes place. 

There are two main classes of leather: — 

(1) Hea\'y, or "sole" leather, 

(2) Light, or "upper" leather. 

These classifications reflect differences of two main characteristics in 
the leather; first, the kind of raw material used, and second, the use to 
which the leather is to be put. 

Heavy, or sole, leather is made from cattle hides, buffalo hides, and 
other thick and heavy hides. The main uses for the leather produced 
from these hides are: 

(1) Sole leather for shoes, 

(2) Belting. 

Light, or upper, leather is made from several kinds of skins, the 
most important of which are: 

(1) Calf and kip, 

(2) Sheep and lamb, 

(3) Goat and kid, 

(4) Horse and colt, 

(5) Pig, 

(6) Kangaroo. 

The products which result from the tanning of these skins are like- 
wise more numerous, the main ones being: 

(1) Upper leather for shoes, 

(2) Glove leather, 

(3) Harness leather, 

(4) Upholstery leather, 

(5) Bookbinding leather, 

(6) Fancy leather goods. 



THE TANNING INDUSTRY 



III. Raw Materials 

The source of raw materials used in the tanning industry is in truth 
the whole world, for products from every part of the globe have their 
functions in the processes of producing leather. The domestic market 
yields large quantities of some classes of materials, but little or noth- 
ing of other essential raw substances; the same may be said in a general 
way of the foreign market. 

A. Domestic Sources 

This country is the largest producer of beef cattle in the world, and 
consequently its largest producer of cattle hides. Hides and skins are 
really a by-product of the meat packing industry, and the number 
available each year depends on the demand for meat rather than on 
the demand for leather. 

In 1909, the last year for which are available complete figures of the 
Census Bureau, there were taken off in this country 13,764,686 cattle 
hides, and there were treated by tanners the same year 20,516,332. In 
other words, the domestic supply of cattle hides during 1909 was 67% 
of the total number of hides treated. In 1914, a total of 19,726,774 
cattle hides were treated. There were imported during the same year 
7,743,303 cattle hides, leaving 11,983,471 hides as the product of the 
domestic slaughterers, or 60.7%. 

It is apparent, therefore, that in spite of the enormous amount 
of hides produced in this country, the domestic supply will suffice for 
only a little more than one-half the demand. 

It is well to note at this point that there are two main classes of 
domestic hides, viz.: "packer hides" and "country hides." The packer 
hides get their name from the fact that they are taken off at the 
slaughter houses of the meat packers, and for several reasons are dif- 
ferentiated from the country hides, which are taken off by country 
butchers, or other slaughterers. The main difference in these classes 
of hides is in the quality of the hide and the percentage of leather which 
the hide yields. The large meat packing-houses, slaughtering as they 
do thousands of cattle daily, keep a large force of men and boys steadily 
employed doing nothing but flaying. As a result they become so 
expert that the hides are seldom cut or mutilated. The packer hides 
are also kept in better condition because of better and standard 
methods of salting. Another advantage arising from the large take-off 
is that the packers can keep a wide selection of different weights and 
grades in stock, facilitating purchasing. Country hides, on the con- 
trary, are apt to be cut because of poor methods of flaying, and to lack 
a uniform appearance. They are not always properly handled, which 
detracts from the amount and quality of the leather which the tanner 
produces. There is, furthermore, an additional expense incident to 
collecting these country hides from many places, and by reason of the 
nece.ssary sorting and classification at the point of distribution. All 
these facts are reflected in the prices of the two classes of hides, packer 
hides usually bringing from two to four cents more per pound than 
country hides. 

By far the larger amount of domestic hides taken off are packer hides, 
as the following figxires will show: 



10 THE TANNING INDUSTRY 



1909— Number of packer hides 12,356,046 

Number of country hides 1,406,640 

13,762,686 

The main distributing points for cattle hides are naturally in the 
West, and Chicago easily overtops all the other cities in the number of 
cattle slaughtered, and consequently in the number of hides produced. 
Following Chicago come in order of their importance, St. T.ouis, Kan- 
sas City, Omaha, Ft. Worth, St. Joseph, Sioux City, Oklahoma City, 
St. Paul, and Denver. 

As regards the other raw materials there is a greater diversity of 
domestic sources of supply. This country produces a large amount of 
calfskins, but can by no means meet the domestic demand, as shown 
below: 

Calf and Kip Skins. 1914 

Number treated 16,067,793 

Number imported . 8,451,929—52.6% 

Domestic supply 7,615,864—47.4% 

The distributing points for domestic calfskins correspond in importance 
to those for cattle hides. 

The domestic supply of sheepslcins, large as it is, is far from enough 
to supply the tanners' demands, as the following figures show: 

Sheep and Lamb Skins. 1914 

Number treated 40,090,198 

Number imported 26,535,258—66.2% 

Domestic supply 13,554,940—33.8% 

In the slaughter of sheep, Chicago is again the predominant market, 
with no close competitor. The other main distributing points are 
Omaha, Kansas City, St. Joseph, and St. Louis. 

The domestic supply of goatskins is practically nil, and this country 
is almost wholly dependent on imports for that class of raw material. 
The following figures show the extent of this dependence: 

Goat and Kid Shins, 1914 

Number treated 37,755,867 

Number imported 36,895,204—97.7% 

Domestic supply 860,663— 2.3% 

B. Foreign Sources 

Hides and skins are imported into the United States from practically 
every country of the earth, but in each class of imports there are cer- 
tain countries which send the predominant supply. In considering 
these foreign sources of raw materials for the tanning industry, com- 
parison will be made on the basis of conditions before the war, since 
this will show the normal course of trade. 

The greatest producing district of cattle hides next to the United 
States is Argentina. That country shi])s large supplies of hides to 
Europe, and also supplies our tanners with the greatest portion of our 
imported hides. The chart on page 42 shows that in 1912 Argentina fur- 



THE TANNING INDUSTRY 11 



nished one-third of the total imports of hides into this country, and 
even under the unusual conditions now prevailing, with enoi'inously 
increased hide imports, the same ratio is being supplied by this one 
nation. 

South America is a very fertile field for cattle raising, and several 
others of its countries send large amounts of hides to the United States. 
Under normal conditions the one which leads the others is Uruguay, 
which ships great quantities of hides from Montevideo, and also sends 
many hides to Argentina to be exported from Buenos Aires. During 
the war Brazil has also sent lai-ge shipments of hides to this country, 
as have also Colombia and Venezuela. 

In ordinary times Canada is the second largest source of imported 
hides, closely followed by Mexico. The one other large source of hides 
is France, and it may also be said that the French hides are of excep- 
tionally fine quality, due to the care which the French peasants take 
of their cattle. 

From the statistics of imports the supply of calfskins seeins to be 
divided very equally, but these figures, though showing truly the 
country of shipment, do not reflect the country of origin with the same 
veracity. Russia is undoubtedly the greatest source of calfskins, but 
many of these skins are shipped out through Germany. Despite this 
fact, in normal times, Russia ships the largest amounts of calfskins to 
this country; at present the supply is entirely shut oft' because of an 
embargo on shipments of skins declared by the Russian Government. 

Germany is the next largest single source of calfskins, many of 
which are undoubtedly Russian in origin. This supply is also shut off 
at present by reason of the activity of the British navy. Netherlands 
and France furnish large supplies of calfskins, and the extent to 
which the Dutch supply consists of reshipments may be seen from the 
drop in the volume of trade since 1914. The other countries of Europe 
together form another large source of supply, and South America also 
sends a considerable amount of calfskins. 

In imports of sheepskins Great Britain has a marked ascendency over 
all other competitors, supplying about forty per cent of our receipts 
from outside sources in normal times. This trade also may safely be 
said to be made up largely of reshipments, since the Colonial wool and 
sheepskin trade is still in the hands of British agents to a large extent. 

The other main countries of shipment are Argentina, Russia, and 
Oceania, including Australia and New Zealand. In normal times these 
three countries send about an equal amount of sheepskins to this 
country, but at pi-esent the Russian supply is cut oft', and the Argen- 
tine supply, with its large German market obliterated, is flowing to the 
United States in unprecedented quantities. 

In the foreign supply of goatskins for this country, one district again, 
the East Indies, has an enormous lead, amounting under norinal 
conditions to over forty per cent of the total. A large portion of this 
East Indian trade is with British India. China stands second to the 
East Indies as a producer of goatskins, but the margin of leadership 
over its other competitors is slight. 

A considerable supply of goatskins comes from the United Kingdom, 
Russia and Brazil, and as shown on the chart on page 45, their 
shipments are almost equal in amount. They are closely pressed, 
moreover, by Argentina and Africa. 



12 THE TANNING INDUSTRY 



C. Organization of the Domestic Market 

The channels of trade by which the hides and skins reach the tanner 
are many and diverse in most cases. In comparison with the foreign 
market, however, the organization of the domestic market is very 
simple. 

The market for packer hides is about the simplest possible. The tan- 
ners buy directly from the packers who slaughter the cattle. This is 
the only possible manner in which packer hides may be obtained, and 
the only variation in the procedure comes when the tanner buys through 
a broker at the primary market. This broker knows the tanner's needs, 
and by a personal selection of the hides, can buy for him the exact 
kind which his business demands. For this service the broker usually 
receives a fee of one-half of one per cent. 

As regards country hides, the agencies which bring the hides to the 
tanner are more numerous, as is shown by chart on page 47. From 
the farmer or country butcher, who slaughters the cattle, the hides 
and skins may go directly to a large collector, or "hide dealer," or 
through a small collector to the dealer. It is the function of this 
hide dealer to collect, cla.ssify, and assort the wide variety of hides 
which he receives, and to job them out to the tanning trade. The hide 
dealer has in some cases grown to very large proportions, and undoubt- 
edly his field is wide enough to allow him to expand greatly. The hide 
dealer usually sells direct to the tanner, but a small amount of business 
is also done through commission men. 

The domestic sheepskin market shows a simple organization, since 
most of this business also is in the hands of the packers. From the 
slaughterer the pelts go either direct to the pullery, where the wool is 
removed, or go to a collector, who in turn .sells to the pullery. From 
the puller the skins may go to the tanner in any one of three ways: first, 
by direct sale; second, by sale through a commission man; third, by sale 
to a merchant or jobber, who may assort and regrade the skins, and 
who jobs them out to his customers, usually small tanners. 

The terms of purchase in domestic trade are very strict, due, of 
course, to the close hold the packers have on the market. For packer 
hides the terms are invariably a sight draft against the bill of lading. 
This is also the general practice in the purchase of country hides, with 
one exception where a di.scount of one percent for remittances within 
five days after receipt of the hides at the tanner's station is allowed, and 
a few others where a longer term of credit is allowed, but a higher price 
for the hides is charged, as an offset. 

There is a further difference, however, in the terms of shipment. On 
all packer hides the goods are shipped f. o. b. Chicago, no matter what 
the point of origin o[ the hides may be. The tanner, therefore, pays 
the cost of transportation from Chicago to the tannery, the packer 
making up any difference in freight from the point of shipment to 
Chicago. On country hides, on the contrary, the terms are f. o. b. 
shipping point. 

The financing of domestic purchases of hides is usually carried out 
through banks, the tanner giving his own note against a loan. This is 
the general custom, and applies wherever the tanner is entitled to a line 
of credit. Where this method of financing is not available to the tanner, 
he may use the next best way by obtaining his hides on trust receipt. 
This method is briefly as follows: — the tanner makes an agreement with 



THE TANNING INDUSTRY 13 



a bank to take up the drafts on shipments of hides, the agi'eement to run 
for a period stipulated by the bank; when the shipment of hides arrives 
the bank takes up the draft, thereby coming into possession of the 
documents attached and with them full title to the hides; the bank 
then allows the tanner to take the goods on a trust receipt, the title 
remaining in the bank, but the hides being delivered to the tanner for 
tanning; at the same time the tanner gives the bank his personal note 
payable at the termination of the period agi-eed upon for the amount 
of the value of that specific shipment of hides; this procedure is repeated 
on the receipt of every shipment of goods until the tanner's line of credit 
is used up; by that time the tanner has probably sold enough leather to 
be able to pay one or more of his notes, which he does, thus permitting 
the bank again to take up the drafts coming with new shipments. It is 
usually customary for the bank to renew the notes at maturity, the 
tanner paying the interest for the period of the note. 

If neither of these methods of financing is open to the tanner, he must 
have recourse to borrowing from some person or fii'm in his own line of 
business. This usually is done through a leather merchant who agrees 
to finance the tanner's shipments of hides provided that the tanner 
will send his product to the merchant for marketing. 

D. Organization of the Foreign Market 

The organization of the foreign market for hides and skins differs to 
such a wide e.xtent with each country of origin that it is practically 
impossible to describe exactly the course the goods will follow in reach- 
ing the tanner in this country. In general, however, the hides follow 
one of the courses shown by the chart on page 49. 

The chart showing the organization of the European market will hold 
in a general way for the methods of distributing hides and skins all over 
the world. As is the case in the United States with country hides, the 
main course is for the hides to reach a hide dealer who is large enough to 
conduct an e.xport trade alone or through other agencies. The trade 
which brings this raw material to the hide dealer is apt to be subdivided 
very finely. Not only do the hides come from farmers, butchers, small 
collectors, and through local auctions, but each one of these agencies 
may be multiplied two or more times, until the goods have passed 
through the hands of seven or eight dealers, each one exacting a profit, 
before they reach the hide merchant. Nor does the intervention of the 
middleman end here. From the merchant who collects and assorts 
these hides and skins to the American tanner is a long distance, only 
bridged by the intermediation of further auctions, commission men, or 
brokers, although some of the largest tanners may be in a position to 
buy direct. It should be emphasized that this complicated oi-gani- 
zation of the foreign hide trade does not apply to every country : the trade 
in continental countries usually goes by as direct a line as possible. 

A word should be said in explanation of the continental auctions. 
These are of three kinds: 

(Ij local auctions. 

(2) national auctions. 

(3) the London auctions. 

The local auctions are, as the name signifies, public sales held at 
various small towns and cities at which the farmers and butchers dis- 
pose of their hides to collectors or hide dealers. 



14 THE TANNING INDUSTRY 



The national auctions are enormous trading affairs, attracting pro- 
ducts from whole nations, and at which the volume of business is very 
great. These fairs do not confine themselves to trading in any one line 
of commodities, and the business carried on in hides and skins is only a 
small part of the total. Perhaps the greate.st of such national auctions 
is the Russian fair held at Nizhni-Novgorod. To this fair are sent 
goods of all sorts from all over the Ru.ssian Hmpire, and there is an 
especially large market for Russian hides and skins. 

The third set of auctions, the London auctions, are in a class by them- 
selves. These auctions are held continuously and consist of sales of 
imported hides almost exclusively. The hides and skins taken off in 
Australia, New Zealand, South Africa, and British India, come to 
England in large volume, due to the fact that many hide merchants of 
these countries are financed by English commission men. These com- 
mission men, therefore, have a hold on the goods collected in the colo- 
nies, and because there is always a ready market in London, the hides 
and skins are sent there for sale and reshipment. 

The South American hide market presents a situation differing from 
other foreign markets in several respects. The one main point of differ- 
ence is that the market is divided into packers, or "frigorificos," and 
country hide collectors, or "saladeros," similar to the market in the 
United States. The principal hide and skin districts are also divided 
on this same basis, the frigorificos being located mainly in Argentina 
and Uruguay, and the saladeros doing most of their business in Brazil. 
In general it may be said that in South America, as in this country, the 
packer hides dominate the market. 

The saladeros collect their hides and .skins in the usual manner, i. e., 
from the lai'ge farmers, butchers, and small collectors. After the goods 
are in the hands of the saladeros, however, their course to the American 
tanner does not differ from that of the frigorifico hides. This line of 
export trade corresponds in general to the methods used in other foreign 
countries, with the commission man playing the chief part in both cases. 
In a few cases large American tanners have their own buying agents in 
South America, but this is unusual. The course of trade in most cases 
is as follows: 

Since the South American packers do not hold their hides for high 
prices, preferring to realize on their product immediately, there is always 
a supply of hides on the market. South American commission men get 
a quotation from the frigorificos or saladeros, and cable an offer to 
their American representative, or to an American commission man 
with whom they trade. The American representative figures what the 
price will be including cost and freight or cost, in.surance and freight, 
and on this basis quotes a price for hides to American tanners. The 
latter usually make a counter offer, which is cabled to South America, 
and after the customary dickering, the deal is closed. Shipment may 
be made immediately if the hides are ready to be shipped, but in many 
cases the hides must be salted, which takes about four weeks. 

Buenos Aires is the greatest South American exporting center, draw- 
ing to it most of the hides and skins which are to be exported from 
Argentina and some from Uruguay. Of these exports the United States 
takes by far the greatest amount, except in shipments of sheepskins. 
Montevideo is also a large shipping point for Uruguayan hides and 
skins, but some of these go through Buenos Aires if the market there is 



THE TANNING INDUSTRY 15 



more favorable. Most of the hides are shipped dry, but recently a 
tendency has become noticeable to increase shipments of wet hides. 

The Brazilian hide situation differs in several respects from that in 
Argentina. The greatest part of the hide trade is carried on through sal- 
aderos, the few frigorificos being in the southern district, and shipping 
through Buenos Aires as well as through Brazilian ports. The general 
method of doing business is through large exporting houses located in 
seacoast cities. These export houses finance the small collectors who 
gather together the skins from inland districts, by means of barter 
trade. This is interesting enough to deserve further explanation. 
The small collector trades not only in hides and skins but in every- 
thing needed to supply the needs of interior stores. He buys what he 
needs from a coast town merchant, and on shipping his hides and 
skins to a hide collector, makes arrangements with the latter to pay 
his bill at the coast merchant's. It is a general practice for the Brazil- 
ian hide merchant to send his goods on consignment to an American 
commission house, and this is true not only of Brazil but also of all 
South and Central American trade. 

Dry South American cattle hides usually cost at least eight cents 
more than domestic packer hides, but this does not necessarily mean 
that the cost of a pound of leather obtained from domestic hides will 
be lower than the cost of leather from South American hides. The 
worth of a hide is due to the amount of leather which it will yield on 
being tanned. Ameiican hides come from the packer with eighteen 
or nineteen pounds of flesh and dirt on them for which the tanner pays, 
but which do not go to make up into leather; that is, there is a pure 
loss of this amount. South American hides, on the other hand, are 
given a light fleshing before they are shipped which reduces the flesh 
and dirt waste to about ten or twelve pounds. Of most importance, 
however, is the fact that most South American hides are shipped dry, 
whereas domestic hides are pickled, and arrive at the tannery contain- 
ing many pounds of pickling liquid. The weight of this liquid is like- 
wise an entire loss to the tanner, and is the main reason for the extra 
price for the imported hides. The tanner, therefore, will get several 
more pounds of leather out of a South American cattle hide than out 
of a domestic hide of the same weight. The increased yield of leather 
is more than enough to compensate for the higher purchase price of 
South American hides, and the apparent discrepancy amounts to little 
or nothing in the end. The above does not hold in the case of imported 
hides shipped in a wet condition, and their price is usually a little 
below that of doinestic hides. 

The large number of middlemen involved in carrying on South 
American and other foreign trade in hides and skins is noticeable, and 
gives rise to the question of their need. It would undoubtedly be more 
beneficial to the domestic tanner if some of the exporting agencies could 
be dispensed with, especially the services of more than one commission 
man. This leads to a consideration of the functions of these inter- 
mediaries and their methods of doing business. 

It may be said in a general way that the American tanner knows 
little of the methods of importing hides, and being unable to study the 
question exhaustively because of pressure of other business, is content 
to leave the dealing entirely in the hands of a commission man. This 
often results in the tanner being treated harshly if he happens to fall 
into the hands of an unscrupulous dealer. 



16 THE TANNING INDUSTRY 



The natural tendency of a commission man is to use his excess 
capital in merchandising, or outright buying and selling of hides if a 
favorable opportunity presents itself. This is the case in the South 
American trade to a great extent, and is a wholly legitimate method 
of trading if not abused, since the usual commissions of one-half of 
one per cent to two per cent will not result in extraordinary profits. 
The commission merchant may use his situation, however, to advance 
his own interests at the expense of his customer, by manipulating the 
purchases, exchange, or weights. 

The financing of foreign shipments of hides resembles in its general 
features the financing of domestic shipments, that is, it is done 

(1) by cash payment, 

(2) by the buyer authorizing the seller to draw a draft against 

him with documents attached, 

(3) by establishing a letter of credit through a national or 

private bank, or trust company, 

(4) by conducting a similar arrangement through a leather 

merchant or commission house. 

The usual methods of settling for a shipment of hides by cash pay- 
ment are to remit by cable, or to purchase a bill of exchange which is 
sent to the shipper. 

In the second method of financing imports the American buyer 
notifies the shipper to draw his draft against him. The shipper, there- 
fore, having shipped his merchandise, presents a draft against the pur- 
chaser with documents attached to his bank, which may pay him im- 
mediately the face value of the draft minus interest and commission, 
or may wait until the draft is collected before paying him this sum. 
The foreign bank then sends the draft to its American correspondent, 
which acts purely as a collection agent. It presents the draft to the 
purchaser, who accepts it, receiving therefor the shipping documents 
attached. At the end of the period stipulated, the draft matures and 
is taken up by the purchaser. 

The third method, which is the one used most commonly, is carried 
out through a national or private bank, or trust company. The pur- 
chaser opens a letter of credit at his American bank for an amount 
to cover fully the amount of his jjurchase of hides, and authorizes the 
shipper to draw on this bank. The shipper receives his money im- 
mediately after shipment as explained above, and the draft with 
documents attached, on arrival in this country, is accepted by and 
becomes an obligation of the purchaser's bank. This bank then allows 
the purchaser to obtain possession of and carry into the tanning pro- 
cesses this shipment of hides, requiring, however, that these specific 
hides shall be identifiable at any time, and also retaining full title to 
the ownership of the hides. This letter of credit is granted, where 
the purchaser is entitled to such a line of credit, for a period up to six 
months, and is renewable in some cases. Letters of credit run for a 
differing length of time depending on the country of origin, the general 
terms of credit being: 

(1) To South American countries— 90 days; 

(2) to Far Eastern countries - 4 months; 

(3) to European countries 4 to 6 months. 

Where the purchaser's credit does not permit him to make use of a 
letter of credit, the tanner must go to a domestic leather merchant or 



THE TANNING INDUSTRY 17 



commission house for aid in financing iiis shipments. In this case the 
merchant will take up the shipper's draft which is made out against 
him, and will deliver the merchandise to the tanner only on condition 
that he is able to pay for it. If the tanner is unable to do this, the 
merchant places the hides in a warehouse, delivering them in whole or 
in lots as the tanner makes payment. In cariying out this method, 
it is customary for the merchant or commission man to conduct his 
foreign payments by opening a letter of credit at a bank, as explained 
above, which his credit standing will allow him to do. 

No definite rule can be laid down concerning the terms of purchase, 
since they differ with each individual purchase, and are covered in the 
quotation of the price per pound which the commission man makes to 
the tanner. Shipments may be made f. o. b. shipping point, in which 
case the tanner pays the insurance and freight separately, or may be 
made f . o. b. point of import, in which case the insurance and freight are 
figured into the price of hides quoted. 

E. Tanning Materials 

Many kinds and classes of materials are used by tanners to trans- 
form the hides into the finished product, leather. The scope of this 
report does not pei-mit an enumeration in full of these materials, or an 
explanation of their uses, but it is necessary to touch upon the most 
important of these, viz. the tanning extracts. 

Tannin, or tannic acid, which is the active transforming agent, is 
abundantly found in a very large number of plants, and there are, in 
consequence, a great number of tannins. They all have the common 
properties of being astringent and drawing together the tissues, of 
forming insoluble compounds with gelatine or gelatinous tissue, and 
of being soluble in water to a greater or less extent. There are two 
general classes of tannins: 

(1) pyrogallols, which make a light-colored leather, not as harsh 
as the other classes of leather, and which decompose, yielding ellagic 
acid which has watei-proofing qualities and gives weight; 

(2) catechols, which are darker in color and yield reds and tannin 
anhydrides which deposit in or on the leather. The tannins of each 
class which are most generally used in this country are as follows: — 

Pyrogallols 

1. Chestnut wood; which comes on the market in the form of crude 
and decolorized liquid extracts. It contains 25% to 31% of tannin. 

2. Oak wood; also a liquid extract similar to the chestnut, contain- 
ing 24% to 27% of tannin. 

3. Myrobalans; which is the fruit of an East Indian tree, contain- 
ing 27% to 38';"o of tannin, and producing a very light-colored leather. 

4. Sumach; the ground leaves of a Sicilian plant, containing about 
28% of tannin, and producing a nearly white and very beautiful 
leather. It is used solely for tanning the best moroccos and the finer 
leather. 

5. Divi-divi; the dried seeds of an Indian tree, containing 40% to 
45% of tannin, and yielding a white leather. 



18 THE TANNING INDUSTRY 



Catechols 

1. Hemlock; which reaches the market as bark or as a Hquid 
extract, contains 25% of tannin, and yields a dark red leather. 

2. Quebracho; a tree which grows only in the southern part of 
South America, chiefly in Argentina and Uruguay. It reaches the 
market as a liquid of from 2o' [ to 35' <' tannin, or as a solid containing 
about 65' t of tannin. It is rather harsh and yields a light red tannage. 

3. Mangrove; coming either as bark or a liquid from Africa, and 
containing 60',^ tannin. 

4. Gambier; the product of a Singapore shrub, generally used as a 
preparation for coloring or in combination with other tannins. 

In addition there are two other very important tanning materials 
which do not fall into either of the above classifications, ^iz: 

1. Oak bark; the bark of the white oak tree, yielding 12% to 14% 
tannin, and producing the best leather known. 

2. Valonia; the ground acorn cups of the Turkish and Greek oaks, 
containing 32%: to 36% tannin, and yielding a tough but firm leather. 

This list does not pretend to include every kind of tanning material, 
but only those vegetable agents most commonly used by domestic tan- 
ners. In addition there are two mineral tanning agents in general use, 
(1) bichromate of potash or bichromate of soda, and (2j alum. 

Tanners usually purchase these tanning materials by contracting 
for a year's supply from the extract dealers or from the importers. The 
supply of quebracho is almost entirely in the hands of a single concern, 
but the market is open on other materials. 



THE TANNING INDUSTRY 



19 



IV. Tanning 

Like most other industries, tanning does not produce a uniform, 
standardized product. Certain classes and gi-ades of leather are pro- 
duced, but within those grades the differences may be very wide, due 
to the fact that the methods of no two tanners are absolutely alike. In 
any description of the methods of producing leather, therefoi-e, it must 
be borne in mind that the explanation reflects the general conditions 
only, and that to describe in detail every process would be to describe 
the details of every tannery in the country. 

A. Sole Leather 

There are four principal tannages of sole leather: 

(1) oak, 

(2) union, 

(3) hemlock, 

(4) chrome. 

The name of the tannage, however, does not mean that only that 
specific kind of extract is u.sed. An oak tannage, for instance, is made 
up of a certain amount of oak extract or bark, but contains other 
extracts, such as chestnut, and indeed, this tannage is characterized 
chiefly by the light color of the leather produced rather than by the 
content of the tanning extract. Union tannage derives its name from 
the fact that the extract is a mixture of oak, chestnut, and hemlock. 
Quebracho may also be used in some of the processes of the vegetable 
tanning. 

The proportion of each of the classes used may be obtained from the 
figures of the Census Bureau for 1914, and the following table will show 
the extent of the use of each class of tanning, with a comparison with 
the figures for 1909 and 1899: 





1899 


1909 


1914 




Sides 


% 


Sides 


% 


Sides 


% 


Total 


15,472,072 




17,805,252 




18,075,482 




Hemlock 


9,810,996 


63.42 


7,963,728 


44.7 


5,626,696 


31.3 


Union 


3,096,162 


20.01 


5,756,227 


32.3 


6,588,799 


36.4 


Oak 


2,562,814 


16.56 


3,805,861 


21.4 


5,267,936 


29.1 


Chrome 


2,100 


0.01 


279,436 


1.6 


592,051 


3.2 



It is apparent that hemlock tannage is decreasing both actually and 
relatively, with a corresponding increase of oak and union tannage. 
This is in part due to the limitation of the supply of hemlock bark; 
originally the United States had apparently unlimited supplies of 
hemlock bark, but it has been cleaned up to a large extent in recent 
years. The use of chrome tannage appears to have spread, but can 
not be said to cut much of a figure in the sole leather business even 
now. The reasons for this will be considered later. 



20 THE TANNING INDUSTRY 



/. Vegetable Tanning Process 

As has been stated above, tanning processes are by no means the 
same in every tannery. In a description of the methods of transform- 
ing hides and skins into leather, therefore, the processes must be regarded 
as typical of a general class rather than as being standardized and uni- 
formly used. 

Hides are received at the tannery in any one of four different con- 
ditions: 

(1) "j^reen," or "fresh," direct from the slaughter house, 

(2) wet salted, 

(3) dry salted, 

(4) sun-dried, or "flint" hides. 

The first tannery operation, therefore, is to wash and clean the hides 
and to bring them back as nearly as possible to the flaccid condition 
in which they left the animal's back. This is accomplished by two 
processes. When ready to be sent through the tannery the hides are 
first put in a huge drum about twelve feet in diameter, containing 
water, called a "soak-wheel," which is revolved rapidly for thirty 
minutes. This has the effect of removing much of the salt and soften- 
ing the hides. The hides then go directly to soak vats, which are pits 
into which the hides are laid flat, and are then filled with water. Here 
the hides remain for two days for the purpo.ses of (1) softening them 
further by swelling and opening up the fibres as much as possible, 
(2) removing any other putrefactive refuse and dirt. 

The next process is that of depilation, or unhairing. Before the hair 
is actually taken off, the skin must be prepared by an operation of 
liming, for the purpose of loosening the hairs in their follicles, so that 
they may be removed more easily. From the soak vats, therefore, the 
skins go to the lime vats, being first suspended in a weak lime solution 
for one day to prepare them for the other liming. For four more 
days the hides are limed, being placed in a stronger solution each day, 
which on the fourth day is heated and kept at 7G^ F. After pa.ssing 
through the liming vats the hides are unhaired immediately in an 
unhairing machine, which removes the hair by means of revolving 
spiral knives. 

The flesh which has remained on the hide is removed at this point 
by a fleshing machine which scrapes off practically all the extraneous 
matter. The hides are then washed in a paddle wheel and go to the 
trimmers, who lay them on beams and complete the fleshing by trim- 
ming the flesh off the edges which the fleshing machine has not reached. 
From the trimming beams the hides go to a graining table where any 
short hairs remaining are scraped off with knives. 

The hides are now ready to take the tanning extracts except for the 
fact that they contain lime which would prevent the tannic acid from 
taking effect. The hides are placed in a paddle wheel containing water, 
therefore, and paddled for twenty minutes or so, for the purpose of 
removing the lime. 

One result of the unhairing and fleshing processes has been to squeeze 
out some of the lime and water which have filled the hide fibres, an 
undesirable loss of weight in hide substance. To bring the hides back 
into a plump condition in which they will be fit to take the tanning 
liquors, therefore, they are placed in vats of water — "cold pools" — 
and kept there overnight. The hides are suspended on frames which 



THE TANNING INDUSTRY 21 



are kept agitated by a system of mechanical rockers, in order tliat the 
water will touch all parts of the hide. 

The processes described above have been carried on in what is known 
as the Beam House; the hides now go to the Yard, and come for the 
first time into contact with the tanning liquors. As in the cold pools 
the hides are suspended in vats on poles which are kept agitated by 
rockers. These vats are built in the form of twenty to a section, the 
vats of every section having a connection with each other by pipes. 
The hides remain suspended in these pits for eighteen days, a stronger 
liquor being pressed over them each day in the following manner: — 
the hides from the cold pools are placed in the tail rocker pit, next to 
the pit holding the weakest liquor. This weak liquor is then allowed 
to run through the connecting pipe into the vat containing the fresh hides ; 
similarly the next strongest liquor is pressed over the hides which 
have been suspended one day, and so on, until the vat which has con- 
tained hides for seventeen days — the "head rocker" — receives the 
newest and strongest liquor. It is seen, therefore, that every day the 
liquor is pumped one vat further along, until it reaches the tail rocker, 
where it has lost much of its strength, and is fit to press over new hides. 

The hides then go to the press layers, pits in which they are laid 
down flat on top of one another, where they remain for twenty days. 
Bark is sprinkled between the hides as they are laid into the vats, and 
the liquor is stronger than in the rockers. The vats are in sections simi- 
lar to the rocker pits, except that there are only ten vats per section, 
and the liquor is changed every other day instead of every day as in 
the rockers. 

The next two processes, called the "first layer" and the "second 
layer," correspond closely to the operation of the press layers. The 
hides are laid away, bark being sprinkled between them in both layers, 
remaining in the first layer for seven days, in the second layer for twelve 
days. The liquor of the first layer is stronger than that which is press- 
ed over the head rocker hides, and the liquor of the second layer is 
stronger than that of the first layer; both liquors remain in the vats 
unchanged for the full time the hides remain there. 

On coming out of the second layer the bellies of the hides are cropped 
off, leaving what are called "backs," which form the best portions of 
the hide. The backs and bellies then go into a third layer, where they 
stay for thirty-four days. They are laid down flat as in the other layers, 
backs on the bottom and bellies on top, and no bark is sprinkled 
between them. The liquor is again stronger, and in order to increase 
the strength quebracho may be introduced at this point. When the 
backs come out of this last layer they are split down the middle or line 
of the backbone, forming two backs. The hide is now in four pieces, 
two backs and two bellies. 

The backs and bellies now go to a bath of hot water, or "hot pool," 
where they remain for fifteen or twenty minutes, for the purpose of 
clearing out and cleaning oiT the sediment accumulated in the layers. 
Thence they go to the extract wringer, which is a simple wiinger, through 
which the hides are run to squeeze out the liquor and dry the hides 
sufficiently to permit them to take up the extract in the next operation. 
The following process consists in placing the hides in a large drum, 
similar to the soak wheel in the first operation, into which is run a very 
concentrated extract, at a temperature of 150^ F., and to the amount 
of twenty-five per cent of the weight of the hides. The drum is revolved, 



22 THE TANNING INDUSTRY 



"milling" the hides, for an hour and a half, resulting in adding consid- 
erable weight to the stock. 

From the extract wheels the hides go to the tempering vats, which 
contain a fairly strong mixture of quebracho or other extract, where 
they remain for four days, for thepuiposeof settingtheextractabsorbed 
in the extract wheel. The liquor increases in strength while the hides 
are in it, because the extract absorbed in the wheel is so much stronger 
than that in the tempering vats. 

When the extract has been set in this manner the hides are bleached. 
They are hung on frames which are fixed over a series of five baths 
containing the following liquids at a temperature 126- F. except the 
fifth; 

(1) hot water, 

(2) solution of soda in water, 

(3) a 2% solution of sulphuric acid, 

(4) a 1.5% solution of sulphuric acid, 

(5) cold water. 

The stock is lowered into each of these baths in succession for seven 
minutes at a time, coming out with a clear, light color. 

From the bleach the backs and bellies go to another wTinger -the 
"oil wringer" — where they are again wrung dry to make room for the 
oil to be absorbed in the next operation. This latter consists of milling 
in a drum, called an "oil wheel," which contains mineral oil, sugar 
and salts. The bellies are milled for twenty minutes, the backs for 
thirty jninutes, for the purpose of giving color, weight, and pliability. 

The stock is then hung up in a room overnight to dry, to allow the 
oil to soak in. No circulation of air is permitted in this room, as it 
would destroy the result aimed for. The next morning the stock is 
"set out" by being run through a machine which smooths the grain by 
pressure of a revolving cylinder. After setting out, the stock is dried 
until it is bone dry in rooms in which currents of hot air are circulated; 
this takes five or six days. After being thoroughly dried the stock is 
dipped in a solution of sugar and salts to add weight, piled under a 
cover over night and set out again, or "reset," the next day. 

At this point some of the backs are divided into shoulders and bends, 
the latter being the most de.-irable portion of the hide, and the treat- 
ment of the bends and shoulders differs. The bends are piled over 
night, and the next morning are sponged and rolled out under rollers 
which exert great pressure, making the leather compact and smooth. 
They are then dried for six or seven hours, piled over night again, and 
rerolled the next morning. The shoulders, bellies and backs after being 
reset are hung up over night, and are sponged and rolled the next 
afternoon; following this they are piled up over night, and given a 
second rolling the next morning. 

After rolling, bends, backs, bellies, and shoulders are all given a 
"finish dry" of four days for bends, backs, and shoulders, and three 
days for bellies. They are then washed on the grain, dried, brushed up 
to get a glossy surface, and are ready for shipment. 

The most noticeable part of this process is the extraordinary length 
of time necessary to turn out hides as the finished product. The time 
required for tannery operations alone is from four to five months, and 
if a two or three months' supply of hides is kept on hand, as is the case 
in most tanneries, this time also must be added to the period between 



THE TANNING INDUSTRY 23 



purchase of material and shipment of product. Considering an addi- 
tional period of credit to the buyer of one or two months, the 
total time between purchase of material and i-eceipt of money for the 
finished product mounts up to between seven and ten months. 

2. Chrome Tanning Process 

It was with the object of diminishing the time necessary to tan hides 
that the chrome tannage was adopted. Chrome tanning consumes 
only a few days as compared to months required by the older method, 
and it produces a leather which is soft and pliable, of close texture, 
and resistant to water. 

Chrome tannage differs from vegetable tannage in not producing a 
complete chemical change in the fibre of the hide. It consists of a 
partial chemical combination between the hide fibre and the chrome 
salts, and a partial mechanical deposition of chrome oxide in and on 
the fibres, which are plated with chrome, whereas in vegetable tanning 
the interstices are filled up with vegetable extract. To make the 
chrome tanned hide flexible oil is worked into the interstices to take 
the place of the extract. 

The preparation for tanning, or beam shop work, is much the same 
for chrome tanning as for vegetable tanning, and need not be explained 
further. After fleshing the hides are washed for the pui-pose of removing 
any sur]>lus lime. They are then put through a process called "bating" 
which has for its object the smoothing and toughening of the grain. 
This consists of paddling the hides in a mixture of a chemical deliming 
agent together with a bacterial agent at a temperature of 90 ' F. for one 
to two hours. This chemically neutralizes the lime, rendering it soluble, 
and depletes the grain of the hide to the i-equired degree. The hides 
are then "pickled" in a mixture of sulphuric acid and salt, which acts 
as a preservative, keeping the hides from putrefaction, and acting as a 
preparation for the chrome tannage. 

The tannage operation itself is what is known as the "one-bath" 
process. The hides are paddled for forty-eight hours or more in a 
solution of bichromate of soda or potash, muriatic acid, and a reducing 
agent of glucose, sugar, or flour, which together form a basic chrome 
sulphate. The length of time for paddling the hides depends primarily 
on their weight, heavier hides requiring a longer treatment, but the 
one essential is that the hides shall be thoroughly struck throu.uh with 
the tanning liquor. After this process, the goods are laid in a pile for 
three or four days, to allow the chrome to be fixed in the fibre. They 
are then drummed in a solution of some alkaline carbonate to neu- 
tralize the acid and remove any excess. Following this the hides are 
tacked out on frames, given a coat of oil to finish oft' the grain and 
increase the pliability and are dried until they are bone dry, which 
takes at least three or four days. The chrome tanning processes are 
now finished and most chrome sole leather is sold in this state. 

It is desirable in some cases, however, to have a heavier and sturdier 
product, and in such instances the chrome leather is sent through one 
additional process. After drying, the leather is immersed in a bath of 
molten wax and resin, or other material, which is heated to a tempera- 
ture of 160^ to 180 F. and left until entirely saturated. It is then dried 
again and is ready for shipment. This extra process fills out the inter- 
stices between the fibre, and corresponds to the stuffing of oil and salts 
given to vegetable extract leathers. 



24 THE TANNING INDUSTRY 



In spite of the great advantage of chrome tannage in shortening the 
time for the tanning processes, thereby releasing the tanner's working 
capital many more times a year, there are certain disadvantages which 
are responsible for the proportionately small amount of chrome sole 
leather tanned. Perhaps the largest factor determining the amount of 
chrome leather manufactured is the demand. The slower processes of 
vegetable tannage have always been and still are considered to result 
in superior leather, which is in demand for all branches of sole leather 
manufactures. These opinions are backed up with certain facts which 
make vegetable tanned sole leather more desirable. This leather, for 
instance, is said to be easier on the foot of the wearer when it is in 
shoes, is a better non-conductor of heat and cold, and is thicker than 
chrome leather. The latter, however, is .said to be a better non-con- 
ductor of water, and to be more durable. The advantages of vegetable 
tanned sole leather, however, so far outweigh the advantages of the 
chrome that it will probably always be used to a far greater extent, 
except in cases where great tensile strength is needed. 

It should be understood that all tanning of sole leather is for stock, 
with the exception of one general class of the business to be noted later. 
This is possible because the product is practically uniform and can be 
readily disposed of at any time during the year. 

B. Upper Leather 

There is a greater diversity in methods of upper leather tanning than 
in sole leather tanning, due to several rea.sons. In the first place, the 
product is more varied than in sole leather tanneries because of the 
wider range of u.ses to which upper leather may be put. It is custo- 
mary for upper leather tanneries to specialize on making certain classes 
and grades of upper leather. This tendency to specialize in product is 
furthered by the larger number of kinds of raw material which may be 
used in tanning upper leather, e. g. calfskins, sheepskins, goatskins, 
etc., whereas, sole leather tanneries are confined to one general kind of 
raw material, e. g., cattle hides. This results in tanneries concentrat- 
ing on one or two of these classes of raw material instead of trying to 
cover the whole field. A third tendency which makes for specialization 
is the possibility of using more than one kind of tannage, but it is not 
usual for the average sized tanner to tan with more than one kind. 
In short, then, the upper leather field is one of specialized tanneries 
because 

(1) it is preferable to concentrate on one cla.ss of product, 

(2) this class of product is obtainable only by use of one kind of 
raw material, 

(3) this cla.ss of product and this grade of raw material are best 
tanned by one kind of tannage rather than by several kinds. 

There is one exception to the.se reasons for specialization. It is 
stated that the general practice is to choose the class of raw material 
and the kind of tannage which will best turn out the grade of product 
desired. Some tanners, however, prefer not to insist on the class of raw 
material being uniform, but will take any material which they can 
get, producing several grades of products, and adapting the tannage 
to that end. 



THE TANNING INDUSTRY 25 



There are three classes of tannages for upper leather in general use: — 

(1) vegetable, 

(2) chemical, 

(3) retan. 

Under these generic headings is a multitude of kinds of tanning 
agents, most of which have been described briefly supra. The principal 
tannages of each class are: 

(1) Vegetable: 

(a) oak, 

(b) hemlock, 

(c) sumach, 

(d) quebracho. 

(2) Chemical: 

(a) chrome, 

(b) alum, 

(3) Retan. 

Of these tannages chrome is by far the most predominately used, an 
estimate placing chrome upper leather as sixty per cent of the total 
upper leather tanned. 

Of the vegetable tannages, the oak and the hemlock processes 
correspond closely to the processes used in tanning sole leather, and 
require no further description. The sumach tannage produces a 
pliable, soft, almost white leather, used largely for shoe linings, but it is 
not of great importance in upper leather tanning. It must be remem- 
bered that in upper leather tanning, as in sole leather tanning, 
methods of individual tanneries differ greatly. 

Since sheepskins are the only skins which reach the tanner already 
unhaired, the first operation in the great majority of cases in upper 
leather tanning is that of unhairing. For this there are two processes 
available, viz. ( 1 ) the lime process, as described above for sole leather, 
and (2) the sulphide of sodium process. In the latter the skins are 
placed in vats containing a solution of this chemical, which dissolves the 
hair. 

There are two processes used in tanning upper leather by a chrome 
tannage, one of which, the one-bath process, is similar to that described 
for chrome sole leather. The second process, or "two-bath process," 
is used mainly for goatskins. Up to the actual process of tanning it is 
like the one-bath process, except that for all upper leather the opera- 
tion of bating is performed more thoroughly. 

In the two-bath process the skins are then paddled or milled in a 
drum containing a solution of bichromate of soda or potash and 
muriatic acid until they are struck through, which consumes from one 
to four hours, depending on the heaviness of the skins. They are next 
placed in the second bath, consisting of a solution of hyposulphite of 
soda, and paddled for about a half day, which serves to reduce the 
chromic oxide and fix it in the fibres. 

The skins are then washed, shaved, and are ready for coloring. This 
is accomplished by revolving them in a drum containing the dye for a 
period varying from one-half hour to one hour, depending on the 
strength of the color desired. They are next sorted and fat liquored, i. e., 
revolved in a drum containing an emulsion of oil and soap, which 
restores a certain amount of natural oil to the skins, rendering them 
more soft and pliable. They are then washed again and run through 



26 THE TANNING INDUSTRY 



putting out machines, which takes the stretch out of the skins. At this 
point they are dried for the first time, and since they are sold by the 
square foot it is necessaiy to obtain as much area as possible. For this 
reason the skins are tacked to wooden frames, so that in drying the 
shrinkage will be reduced to a minimum. 

At the end of this drying the skins are hard and stiff, and must be 
made pliable, which is accomplished by the "staking out" process. The 
skins are first seasoned with a solution which fills out the grain, and 
after drying again are "machine staked," i.e., put through a machine 
which pulls the skins first one way and then another, serving to make 
them soft. The skins are then "rolled" under a circular wheel on which 
there is great pressure, which smooths out the skin and frees it of 
wrinkles. If the skins have been dyed black, they are "glazed," i.e., 
given a shiny finish, or they may be "embossed," i.e., treated by a 
machine with engraved rollers which brings out the grain. They are 
then run through an almost human machine which measures the num- 
ber of square feet of the skin, are bundled, and are ready for shipment. 

Sheepskins arrive at the tannery from the pullery already unhaired 
and "pickled," i.e., treated with a liquor containing one per cent of 
sulphuric acid and seven per cent of salt, for preservative purposes. 
They are first sorted into gi'ades according to the kinds of leather into 
which they are to be made, are rinsed to take out the pickling liquor, 
and are then pressed in a hydraulic press for three to four hours under a 
weight of .seventy-five to one hundred and fifty tons, for the purpose of 
removing the grease and dirt. This process causes the skins to be 
pressed together into large cakes, and to separate them they are placed 
in drums, or "pin wheels," which are revolved rapidly until the skins are 
separated. Following this the skins are run through a fleshing machine 
and are then ready for any one of the tanning processes. 

Skins tanned in sumach follow the usual course of the preliminary 
operations and are then hung in vats containing the sumach liquor for a 
period of six days. On removal they are thoroughly dried, and pass 
through the other processes of coloring, drying, staking, rolling, glazing, 
and measuring as described above. 

The alum tannage and the quebracho tannage are very much the 
same as the chrome processes in that the actual tanning is accomplished 
by revolving the skins in a drum containing the tanning liquor. The 
time for milling is about one hour for the alum tannage, but is increased 
to seven hours when quebracho is the tanning agent. The remaining 
processes are practically the same as in chrome tannage, except that 
one additional operation is sometimes added to increase the pliability, 
viz. "knee staking." This consists of pulling the skins over a rounded 
steel edge, using the knee to get a good leverage. 

Calfskins and cattle hides which are tanned in vegetable extract or 
in chrome are often split for use as upper leather. This operation is 
usually inserted just before the hides are to be tanned; after an inspec- 
tion and sorting the hides are sent through a machine which splits the 
hides into two layers, the correct thickness being taken off the top, or 
"grain" side. Following another inspection to see that the grain splits 
are uniform in thickness and quality the splits go to the tanning drums 
or vats. 



THE TANNING INDUSTRY 27 



There is one other general class of tannage used, known as retan. 
This is, as its name indicates, a double tanning, consisting of a primary 
chrome tannage followed by a vegetable extract tannage. 

C. Patent Leather 

When it is desirable to make the tanned skins into patent leather, 
it is necessary that some of the grease be taken out of the skins in oi-der 
that the finish may get a good hold on the grain of the skin so that it 
will not peel off in wearing. This process, known as "degreasing," is 
accomplished by hanging the skins in large tanks and giving them a 
naptha bath varying in length according to the nature of the skins and 
the process used in tanning. 

The skins after degreasing are ready for the patent leather process, 
or "japanning." They are first laced by ropes to large wooden frames 
and pulled absolutely taut. The ne.xt operation is to apply evenly a 
daub coat consisting of a preparation of linseed oil, collodion, amylace- 
tate and a color, which furnishes a foundation for the coat of japan 
and prevents it from striking through the grain and fibres of the skin. 
The treated skins are then dried in the sun for about six hours, follow- 
ing which they are rubbed down lightly with pumice to remove dust im- 
perfections and smooth the coat. A second daub coat, drying and 
pumicing is given in most cases, and the skins then go to the finishing 
room to be japanned. This process consists in giving the hides or 
skins a coat of varnish of which linseed oil reduced with turiDentine 
is the chief ingredient. This coat is dried on by placing the frames to 
which the skins are lashed in ovens heated to 140 F. for twelve to 
twenty-four hours. This is followed by another sunning of from six to 
eight hours to complete the process. 

Under normal conditions it takes from two to three weeks for any 
one lot of skins to work through the japannery. This same lot has been 
in the tannery, on the average, from four to five weeks, so that about 
seven weeks elapse since the skins were started through the tannery pro- 
cesses until the time they are ready to ship to the buyer. 

Patent leather, like all other upper or light leather, is sold by the 
square foot. This is true also of chrome sole leather, which is an excep- 
tion to the rule, as all other sole leather is sold by the pound. 

Japanned leather, or as it is more commonly known, patent leather, 
was formerly manufactured under a patent, whence it receives its 
name. The basic patents have now expired, however, and the right 
to produce this class of leather is open to any person. 

D. Amount of Product 

The rapid increase of production of leather in this country is shown 
clearly by the chart on page 51. From a product valued at $157,2.37,597 
in 1869, the production rose to $367,201,708 in 1914. It is note- 
worthy, also, that practically all of this increase occurred within 
the past twenty-five years, and that the increase since 1899 has 



2S 



THE TANNING INDUSTRY 



Sole leather is easily the most valuable class of leather produced, 
with upper leather a good second. The table below will show the 
relative value of each class of leather manufactured in 1914: 



Class 


Value 


% 


Total 


$341,796,436 


100.0 


Sole leather 


116,188,059 


33.9 


Upper leather 


85,051,550 


24.9 


Cattle side upper 


32,939,139 


9.6 


Harness leather 


20,969,169 


6.1 


Patent leather 


15,590,812 


4.5 


Upholstery leather 


14,328,358 


4.2 


Fancy leather 


8,775,968 


2.5 


Belting 


8,369,584 


2.4 



Of the upper leather tanned the 
the following table will show: 



largest amount is of calfskins, as 



Upper Leather, Total 


$ 85,051,550 


100.0% 


Calf and Kip 


41,812,734 


49.2% 


Goat and Kid 


26.113,234 


30.7% 


Sheep and Lamb 


10,fc.85,175 


12.8% 


Cabretta, Kangaroo, etc. 


4,198,017 


4.9% 


All other 


2,042,390 


2.4% 



E. Contract Tanning 

There is one large class of tanning which has not yet been 
mentioned — tanning on contract. This grade of work amounted to 
$25,405,272 in 1914, or 6.9';o of the total value of leather products for 
that year, and an increase of almost 19*^^ over the figures for 1909. It 
is easily seen, therefore, that a class of work of such importance deserves 
special attention. 

The nature of contract tanning is well indicated by its name: the 
tanner operates his tannery under a contract from another person, who 
supplies the raw material, and disposes of the leather. The tanner's 
function is merely to tan all the hides or skins which come to him, for 
which he receives a certain commission. 

Tanners who do work on contract are obviously those who are not 
able to finance themselves sufficiently, and who, rather than to meet a 



THE TANNING INDUSTRY 29 



loss because of fixed charges, will place their tanneries at the disposal 
of some leather merchant or other person who has skins which he 
desires to have tanned. This condition may not always obtain with a 
tanner, and it may be that he will tan for a commission only until he 
can finance his own purchases and sales, or during periods of depression 
when it is difficult to find a market for his goods through his own 
agencies. Taking on this business is usually not from choice but from 
necessity, and the contract tanner, like the small boy, is hopefully 
awaiting the time when he will grow up and be self-supporting. 

This relation of contract tanning to the financial condition of the 
tanner is paralleled by the relation to the size of the tanner. The 
tanner who works on contract is usually the owner of a small tannery, 
such a one, for instance, as would tan a hundred cattle hides a day, or a 
con-esponding number of skins. The small size of a tannery is a funda- 
mental reason for the tanner receiving a fixed price per hide instead 
of financing his entire business. 

A third relation which bears on this problem is the tendency of shoe 
manufacturers and other producers of leather manufactures to inte- 
grate. Having a plentitude of capital, they are likely to buy up a ship- 
ment of skins or hides, have them tanned on contract, and take the 
finished product for their own use. This inclination to integrate is 
increasingly noticeable, and is responsible in many cases for the con- 
tinuance of tanners who do their work on contract. 

F. Costs 

It is difficult to make any statement concerning the costs of tanning 
which will adequately cover the subject, as it will be realized that prac- 
tices of individual tanneries differ widely, and with them, the costs. In 
sole leather tanneries using vegetable extracts, the proportions of costs 
may be said to be close to the following: 

Raw Material Cost 70% 

Tanning Cost 25% 

Labor Cost 05% 

For upper leather tanneries it would be almost impo.ssible and useless 
to attempt to lay down definite percentages of costs, for several reasons. 
As has been pointed out already, no two tanneries make exactly the 
same kind and grade of product. The methods of tanning, furthermore, 
are so diverse, and the tanning extracts used are so varied, that it 
would be impracticable to average costs on these different bases. And 
lastly, the raw material may be of several different classes, and from 
every quarter of the globe, which has a wide effect on costs. It would 
be the part of discretion, therefore, not to set down any ratio of costs 
for upper leather tanneries. 

G. Tanneries 

The number of establishments tanning hides and skins in this coun- 
try has shown a steady decrease, according to figures of the Census 
Bureau. 



30 



THE TANNING INDUSTRY 



This will be shown by the following table: 



Year 



1869 



No. of 

Establ. 



No of No. of 

Wage Earners ' Wage Earners 
I per Estab. 



7,569 



1879 


5,628 






1889 


1,787 






1899 


1,306 


52,109 


47.5 


1904 


1,049 


57,239 


54.6 


1909 


919 


62,202 


67.7 


1914 


740 







It is apparent that the tendency is to decrease the number of estab- 
lishments and to increase their size. This may be attributed to two 
main causes: 

(1) Magnitude of the operations. 

(2) Integration by packers and leather goods manufacturers. 

The description of the processes necessary in tanning hides given 
above shows, more than anything else, that tanning is a big as well as a 
long operation. The necessity for a large amount of capital with which 
to finance the purchase of hides and skins, their passage through the tan- 
nery, and the sale of leather betokens that only a business conducted 
on a broad scale can survive the competition, unless it resorts to 
contract tanning. With the growth of enormous tanning concerns this 
need of enlarged tannery operations has become more and more 
apparent, until at the present time it may be said that the "small 
tanner" of a few generations ago is non-existent, except as a commis- 
sion tanner. 

This growth in size may be laid to the tendency of packers and manu- 
facturers of leather products to integrate as much as to the general 
tendency towards enlarged units of business. Some time ago several of 
the largest packers sought to provide an outlet for the hides and skins 
which are the by-products of their trade by getting control of certain 
tanneries. The result was to bring this large force into the leather 
market as well as into the hide market, and to provide another power 
urging large scale production. Recently this same desire to integrate 
further has been manifested by the packers, as a result of which several 
more independent tanneries have been brought under their control. 

The inclination to integrate has also been evident on the part of 
shoe manufacturers and other producers of leather products who have 
wished to control their raw material supply. This has taken two forms, 
contract tanning and entire control of tanneries, usually those of a 
medium or large size. 



THE TANNING INDUSTRY 31 



Thus the independent tanner is being squeezed from two sides, by 
the large scale production and competition of the packers' subsidiaries, 
and by the cutting off of his market by reason of integration by manu- 
facturers of leather products. 

Geographical Distribution 

Pennsylvania, Massachusetts, New York, and New Jersey easily 
overtop all other states in the number of tanneries located there. 
(See Appendix B.) When the number of tanneries is compared to the 
value of product by states, however, a different aspect of the situation 
is presented. Pennsylvania, for instance, with 163 establishments 
produced over seventy-seven million dollars worth of leather in 1914. 
Massachusetts, with 132 establishments, produced only forty luillion 
dollars worth of leather, whereas Wisconsin, on the contrary, with but 
32 establishments, produced forty-four million dollars worth of leather. 

This throws a Hght on the size of the establishments in the various 
states, and also on the class of product manufactured. The largest 
tanneries are liable to be producers of sole leather, a tendency which is 
truly reflected in Pennsylvania, which is the greatest sole leather di-s- 
trict in the country. The western states are, as a rule, larger produce's 
of sole leather, whereas the eastern states, being near the points of 
importation, tend to specialize in upper leather. 

Pennsylvania has no near competitor to dis])ute her title of largest 
leather producing state in the country, putting out 23.8% of the total 
value of leather produced. Wisconsin ancl Massachusetts were running 
a close race for second place, with no other states very close, as shown 
by the chart on page 52, together with the other states which are large 
producers of leather. 

Location of Tannery 

There are certain conditions affecting the location of a tannery which 
are worthy of mention. 

The necessity for locating a tannery near the source of bark supply is 
not as strong now as it was a generation ago. The prime need of such 
a location at that time is reflected in the great number of tanneries in 
Pennsylvania, which was formerly the largest source of hemlock bark, 
and also in the tanneries located in the South, v.-hich is the region sup- 
plying most of the chestnut wood and oak b:;rk. With the introduction 
of quebracho, chrome, and alum tannage, and with the increased use 
of extracts of the bark instead of the bark itself, the necessity for 
proximity to the bark supply does not figure greatly. 

Probably the most important consideration in the location of a 
tannery at the present time is that it should be placed where the supply 
of hides or skins necessary for the class of leather which it produces 
shall be readily available. This means that a tannery using imported 
skins may find its best location near the coast, in order to save freight 
charges to inland points. The same applies to the use of domestic 
hides and skins, for every section of the country produces hides pecu- 
liar to itself and whose characteristics are more oi- less better adapted 
for one purpose than for another. Southern hides, for example, are 
best adapted for light harness leather and some grades of shoe leather, 
and any tannery producing such kinds of leather would naturally find 
its best location in the South, so far as its supply of raw material is 
concerned. 



32 THE TANNING INDUSTRY 



A second very important consideration affecting the location of a 
tannery is the market for that particular class of leather which the 
tannery produces. The greatest shoe district of the country, for 
instance, is in eastern Massachusetts, which makes Massachusetts, or 
at any rate, the East, a desirable location for sole and upper shoe 
leather tanneries. This applies in equal measure to the location of 
tanneries near other shoe manufacturing districts, glove making 
districts, or any district in which leather products are manufactured in 
large amounts. 

A third consideration is the quantity and quality of the labor supply 
available in the town or city in which it is planned to locate the tannery. 
As in all other manufacturing industries, it is not only essential that 
the supply of labor be constant and be sufficient to meet all demands, 
but also that it should have some degree of aptitude for the work. It 
has been found that districts where trade spirit runs high yield a very 
desirable class of labor. 

There are certain financial considerations which also play a part in 
the determination of a tannery location. A tannery, and especially a 
japannery, requires a large amount of land, which brings the initial 
cost to a high figure. The cost of land, therefore, is ah important item 
to be considered. This applies with equal force to the surrounding land 
which is vacant and which may be needed later for expansion. 

It is not requisite that a tannery be in the immediate vicinity of a 
good banking centre, for sufficient accommodation can be obtained if 
it is within a day's mailing distance of the bank. 

A good supply of soft water is necessary for tanning purposes. It is 
also essential that the tannery wastes be carried off in a sanitary man- 
ner, either by the sewage system, or by disposition in a stream which 
does not have any immediate connection with the source of water 
supply. 

Tannery Construction 

Little attention seems to have been paid in the past to the most 
eflTicient methods of tannery construction, and the subject has but 
recently attracted any amount of serious attention. 

Since the processes of tanning are practically continuous, the best 
layout for a tannery is one by which the material will move through in the 
straightest possible line. This problem has been met by one tannery by 
the construction of a U-shape building, with the railroad tracks pass- 
ing the open end of the building; the raw material is brought in at one 
end of the building and the finished product is shipped out at the other 
end. 

In general a single story building is desirable e.xcept for the space 
where the drying operations are performed, where multiple stories are 
necessary to give sufficient room. The warehouse is also of multiple 
stories, but need not be located at the tannery. It is common practice, 
indeed, in cases where the company is large enough, to have a ware- 
house in a leather distributing center, for the purpose of facilitating 
the purchase of leather by giving the purchaser an opportunity to 
examine the product. 

Contrary to conditions in many other industries a tannery need have 
no special advertising value, and also need have no re-sale value. In 
cases where the tannery has a city warehouse, advertising value may 
be a necessary condition. 



THE TANNING INDUSTRY 33 



Tannery Equipment 

The most fundamental consideration in the question of tannery- 
equipment is the class of product to be manufactured and the method 
of tannage to be used. Equipment for a vegetable extract sole tannery 
is very different fi-om a tannery producing light or upper leather by 
either vegetable or chemical tannages. In the latter case, the need of 
having the leather soft and pliable necessitates the use of much m^ore 
machinery, and of a different class than that used for sole leather. 

The use of machinery has a definite limit because of the fixed daily 
output of a tannery where vats are used in the tanning operations. 
In a sole leather tannery using vegetable extract, for instance, the vats 
will hold only a certain number of hides, resulting in the possible com- 
pletion of only a definite number per day, viz. those which have passed 
through the previous processes. The same is true of the tannages where 
vats are not used, except that the output is slightly more elastic. 

The amount of machinery used depends to a large extent on the 
class of product. Upper leather tanning, for example, is mainly done by 
machinery, the propoi'tion of pui-ely manual work being very small. 
Sole leather tanning, requiring the constant movement of hides from 
vat to vat, uses a larger percentage of manual labor. 

H. Labor 

Practically all the labor in a tannery is unskilled, the only exceptions 
being the foremen. The machine work which men are required to per- 
form can be learned easily, and no high degree of intelligence is required 
of any of the laboi'ers. Because of the simplicity of the processes, there 
is little effort made to train the workers systematically, new men being 
placed in a department and given instruction by the foreman. 

Little welfare work is done by the tanners, as the men are in general 
well paid for the amount of labor required. This is again apparent 
from the small hold the unions have on tannery employees. Some 
attempts have been made to unionize tannery operatives, and the 
I. W. W. has also endeavored to spread its gospel among them, but 
without any noticeable eflect. This is partly due to the satisfaction of 
tannery employees and partly to the mixture of nationalities, which 
does not make for homogeneity. 

Tannery labor is usually very well satisfied, and consequently the 
labor turnover is not large. Men who leave the tanneries of ten go into 
shoe factories, but that tendency is decreasing, and the desire to 
remain a "tannery man" seems strong enough to hold most men to 
their jobs. 

Since most of the labor of a tannery is unskilled, and consists in 
pushing trucks or running a simple machine, the rate of wages is not 
exceptionally high though it can not be said that the men ai-e under- 
paid. Common laborers are generally paid about .$2.25 a day, and 
workers on machines receive in the vicinity of $3.00 a day. The day 
rate is the method of payment in most cases, especially for common 
labor, but there is a tendency to put machine workers on a piece rate. 
Profit-sharing or bonus systems are not used in tanneries, as the indus- 
try does not seem to adapt itself to such methods. 

The hours of labor vary in the great majority of cases from fifty-four 
to sixty hours per week, or 96.5';o of the total, according to the census 
of 1909. There were practically no wage earners laboring over sixty 



34 THE TANNING INDUSTRY 



hours a week, and only 3.4"^ of the total under fifty-four hours. The 
limited amount of the daily output has a marked effect on the hours of 
actual labor. As has been explained above, only a definite number of 
hides can go through a tannery owing to the limited number of vats or 
drums and the impossibility of expediting the process. When this 
number of hides has gone through the tannery processes for one day, 
therefore, nothing remains to be done. Thus, though the specified 
hours of labor may amount to nine hours a day, it is quite certain that 
the actual working period will amount to a substantial reduction from 
that time, often as much as an hour or more. This shortened working 
period, together with the very fair wages give good reasons for a 
workman's desire to be a "tannery man." 

I. By-Products 

There are two main classes of by-products resulting from the tanning 
processes, (1) hair, and (2) fleshings and trimmings. 

Hair comes from the process of unhairing the hides or skins, and may 
be put to many uses, as to stuff chairs, cushions, etc. The best white 
hair, moreover, is mixed with wool and commands a higher price than 
does the brown hair. After the unhairing process the hair is sorted 
according to colors and according to length, there being a difference in 
the length of the hair according to whether the hide was taken off in 
winter or in summer. It is usually sold to a middleman who collects 
and grades the hair before disposing of it to the manufacturer who 
needs such material. 

Fleshings and trimmings come from the various fleshing and trim- 
ming processes, and are used in the manufacture of glue. The flesh- 
ings are collected, and sold directly to glue manufacturers without the 
intermediation of any dealer. 

J. Financing 

It must be apparent that the necessity of outside financing of tanners 
differs with the class of leather produced. Upper leather, for instance, can 
be manufactured in periods varying from three to six weeks, or more, 
allowing a turnover of product of five to six times a year. Sole leather, 
on the other hand, requires from one to six months for tanning, accord- 
ing to whether a chrome or a vegetable extract tannage is used, and in 
the latter case, which is the predominant way of tanning this product, 
the turnover can not be more than twice a year. Hence, a sole leather 
tanner is obviously in need of more working capital, which he is not 
always capable of furnishing himself. 

Leaving aside differences in tannery products, and speaking of 
conditions in general, it is clear that the length of time necessary to 
put out the finished product in the tanning industry requires that the 
tanner be able to finance himself amply, or that he have some sure and 
ready source of capital outside his business. Especially is this true as 
regards purchases of hides and skins at certain seasons of the year, or 
even regularly over the whole year. 

In estimating the character of the risk assumed in granting a line of 
credit to a tanner, the inventory of raw material, material in process, 
and finished product may be considered as first class current assets. 
There is always a ready market for the raw material and for the finished 
product, both of which can be disposed of at a little sacrifice. Material 
in process has a higher value than raw material, and has an increasingly 



THE TANNING INDUSTRY 35 



higher value every day it stays in the tannery. It does not seem, there- 
fore, that a banker takes a risk of any large degree in considering 
inventory as a good basis for loaning. 

When the tanner imports any or all of his raw material, the reasons 
for extending credit are reinforced on both sides; on the side of the 
tanner, who is called upon to finance himself for the extra period of ship- 
ment, and on the side of the bank which may protect itself in additional 
ways if necessary with the assurance that it is only a matter of time 
before that shipment of materials will be turned into cash. It is abso- 
lutely essential from the tanner's point of view that he finance his 
imports through a bank, especially if he buys most of his raw material 
at periodical auctions such as the Nizhni Fair, which comes once a year 
and makes an enormous call on his resources. 

In this connection it is well to emphasize the arrangement often 
made with tanners by banks allowing them to renew their notes given 
on foreign or domestic shipment. At no increased risk, and with the 
realization that every day adds new value to the material on which the 
loan is based, the bank may renew the loan until the shipment for which 
it was extended has passed through the tannery, and has been converted 
into cash. The beneficial result on both the individual tanner and on 
the tanning industry is not hard to foresee if this practice is increased. 



THE TANNING INDUSTRY 



V. Leather Market 

A. Organization 

The largest market for leather in this country is Boston, which is the 
recognized center of the leather trade, not only for sole leather, but also 
for upper leather. The other main sole leather markets in order of rela- 
tive importance are New York, Philadelphia, Chicago, and St. Louis. 
There are only two other very important upper leather centers, viz.. 
New York and Chicago, although Philadelphia is recognized as the 
greatest center for glazed kid, or morocco. The reason for the pre- 
dominance of Boston is its proximity to the greatest boot and shoe 
manufacturing district of the country, as well as because of the large 
tanning industry in eastern Massachusetts. 

The main method of selling leather is by direct sale from the tanner 
to the manufacturer of leather products, practically ninety per cent 
of the leather being sold in that manner. The tanner himself does not 
always sell the leather, however, often organizing a separate company 
in which he has an interest to market his product. 

The chart on page 58 will show the other methods of distributing 
leather. The jobber, or leather merchant, plays a large part in the 
marketing of leather which is not sold direct to the manufacturer. 
In some cases this merchant employs a commission man to aid in the 
purchase of leather, but this course is used in a very few cases. The 
manufacturer may also buy through a comm.ission man, although this 
method also is used but little. The only other large domestic market 
for leather is the sole cutter, whose function is to cut sole leather into 
shapes readily u.sable by shoe manufacturers; he may sell his product 
direct to the manufacturer, or he may distribute through a findings 
jobber and findings retailer. 

The foreign market for leather, like the foreign market for hides, is 
much more finely divided than the domestic market. There is a further 
complication in that the manufacturer of leather products is seldom in 
the market himself for leather, most of the trade being handled by 
"factors." These factors finance the shoe manufacturers and dispose 
of their products, somewhat as the American leather merchants do 
in the case of contract tanners. This arrangement makes the factors the 
largest purchasers of leather in the foreign market, except for large 
co-operative societies which do their own manufacturing. 

The general organization of the foreign market is shown by the chart 
on page 54. The American end of the distribution of leather is 
handled by a jobber, a commission man, or the American represent- 
ative of foreign factors. A few American tanners have resident selling 
agents in some of the foreign countries, but this is not the general cus- 
tom. As has been stated, the factor is the main distributive agency on 
the foreign end, although some trading is done through commission 
men. 

The terms of sale in the leather trade are very easy as compared 
with the terms of purchase of raw material. The following list will 
show the discounts allowed for prompt payment in the various classes 
of trade: 

Sole leather 4%, 10 days; 3%. 30 days; 2%, 60 days; 

Upper leather 5%, 10 or 30 days; 4%, 60 days; 

Harness leather 2%, 30 days; 



/ 



THE TANNING INDUSTRY 37 



Fancy leather 2%, 10 days; net, 30 days; 

Book leather 3% or 2%, 10 days; 

Upholstery leather 2%, 10 days. 

In addition to the long discounts allowed in the sole leather and 
upper leather trade, it is the custom to give twenty days' antedating 
on practically all bills, thus giving the full discount for thirty days 
instead of ten. These discounts are rigidly adhered to in practice, and 
it is found that most customers take up the maximum discount. It 
is interesting to note that large and small purchasers receive identical 
treatment, no extra discounts for purchases of large quantities of 
leather being allowed. 

The terms of sale on foreign purchases are from sight to ninety days' 
draft. 

B. Domestic Market 

The method of selling to domestic purchasers is, as has been stated, 
mainly by direct sale to the manufacturer. The sale may be con- 
summated by the tannery office, by the selling office, or by traveling 
salesmen. In general, the principal way in which leather is sold is from 
the selling office of the tannery, located in some leather center. This 
is especially true if there is a warehouse in connection with the sales 
office, for many buyers prefer to examine the leather before closing a 
deal for its purchase. Salesmen are used to a large extent in creating a 
demand for the tannery's product. 

The middleman plays an important part in the leather trade despite 
the comparatively small proportion of business done through him. The 
leather merchant, or wholesaler, is very useful to the tanner, or to the 
tanner's sale agency, in cleaning up job lots, and in taking off his 
shoulders the bother of catering to the small manufacturer of leather 
products. The merchant is willing to take greater credit risks, and 
since he specializes in the selling end of the trade, he can do this with 
greater safety. The commission man, acting as selling agent for the 
tanner, is also a significant factor in the leather trade. The main portion 
of his business is in selling at the leather centers for tanners who are 
located in other parts of the country. A great number of these com- 
mission men employ their excess capital by buying hides to be tanned 
on contract. 

The tendency to cut out the middleman is not being felt strongly in 
the leather trade. This is due in great part to the fact that the tanners 
are already selling most of their product through their own agents, 
wherever it is possible, and what trade remains is either undesirable 
because of its size and credit risk or cannot be reached by direct means 
so advantageously. 

Sales of leather do not show any marked seasonal fluctuation, the 
market being very steady the year round. The highest point in deliv- 
eries of leather usually comes around October, when shoe manu- 
facturers are stocking up for their next run, and the low point comes in 
the spring, usually April. The effect of the shoe manufacturers' seasons 
does not seem to be felt gi'eatly in the leather trade, due, no doubt, to 
the fact that although shoe factories must stock up for each new run, 
their demand for leather is practically continuous. 

Advertising is not depended on to any great extent as a method of 
demand creation. Trade magazine advertisements are carried in large 
number by tanners and their selling agents, but rarely does the effort 



38 THE TANNING INDUSTRY 



extend beyond this, and it may be classed as general publicity adver- 
tising. 

Shipments of leather are made from the tannei-y or warehouse, f . o. b. 
shipping point in practically all cases. Foreign shipments are also 
made under this rule. 

Competition in the domestic leather market is very keen in most 
cases, verging at times on the cut-throat variety among some dealers. 
There is no dominating factor in the market, although it is estimated 
that the United States Leather Company controls about 40 'i of the 
output of sole leather, and a few other tanners control another 20% 
of this trade. The market is so open, however, that no ruling influence 
can be exercised by any one concern, as a buyer can readily find a 
market elsewhere if he discovers an attempt to control prices or supply. 
Another factor making for an open market is the umbrella policy of 
the United States Leather Company, which endeavors to keep the small 
independent in business rather than forcing him to the wall, since the 
operations of a large number of small dealers tends to steady and 
strengthen the leather market, rather than causing marked rises and 
falls on a false basis. 

C. Foreign Market 

Our largest markets for sole leather and for glazed kid upper leather 
exports are shown by the charts on pages 55 and 56. The United 
Kingdom is seen to be our greatest foreign market for sole leather by 
a wide margin, although doubtless much of this leather is for re-export. 
In ordinary times Japan takes about as much leather as the remaining 
countries of Europe combined. (See Appendix C.) 

In imports of our glazed kid leather the United Kingdom again leads 
all other nations by a wide margin. Germany and Netherlands are 
ordinarily large importers of this class of leather, and the remainder of 
Europe is a good market. This condition reflects great credit on our 
upper leather tanning industry, for we lead the world in producing 
goatskin and kid leather. 

The main competition in our foreign trade comes from Germany 
and Austria, which are large producers of sole and upper leather. 
Present conditions, of course, have absolutely eliminated all such 
competition, which accounts for the rapid increase of exports of leather — 
amounting to an increase of over 43% during 1915 and 1916, for sole 
leather and 30% for glazed kid. The possibilities of holding the in- 
creased foreign trade after the close of the war do not look very hopeful 
because of the strong competition bound to come from the central 
empires as soon as they are able to procure a sufficient supply of raw 
material, and to satiate their domestic demand. 

D. Sole Cutting 

There is one division of the market for leather which has not been 
described as yet, and which is becoming of increasing importance— the 
sole cutting business. The function of this branch of the leather indus- 
try is to cut leather into shoe soles of various sizes and grades, and to 
distribute them to shoe manufacturers, which serves to fill the need of 
the manufacturer of a special kind of product requiring only a few 
grades of leather. 



THE TANNING INDUSTRY 39 



No figures are obtainable on the extent of this business, but it is 
known that it is steadily increasing. Thei-e is a noticeable tendency, 
furthermore, for tanners to take on these operations to provide a 
dependable outlet for their product and, of course, to reap the benefit 
of any additional profit. This field is primarily suited for large tanners 
whose product is diverse, for they may cut a large assortment of grades 
of soles, but the small tanner is by no means prevented from establish- 
ing a sole-cutting department, as he may speciaHze in selling one or two 
grades of cut soles. 

E. Substitutes for Leather 

There has been a tendency in recent years to strive to find substi- 
tutes for leather, due primarily to the rise in prices for the tanners' 
product. Since the start of the European war this inclination has been 
strongly emphasized until at the present time substitutes for leather are 
in very general use. These substitutes are of two general classes, cor- 
responding to the classes of leather: 

(1) substitutes for sole leather, 

(2) substitutes for upper leather. 

The principal substitutes for sole leather include rubber, and a 
composition material of leather and rubber; the chief substitute for 
upper leather is cloth. Rubber is a widely used substitute for leather, 
but its use is due more to desire for additional comfort rather than 
because of reasons of expense. The composition sole material has come 
on the market only recently, and seems to be filling a real need at the 
present time because of its comparative inexpensiveness. The question 
of its relative worth brings forth widely different claims, but it is the 
general opinion that this material will outwear leather if it wears evenly. 
The difficulty is that the substitute sole is liable to crack under extreme 
heat or cold, whereas leather seems to have a porousness which allows 
it to suit itself to differing conditions of temperature and humidity. 

The chief substitute for upper leather, cloth, can not be judged 
entirely on the grounds of intrinsic value because of the fact that there 
is no small degree of style element involved in its use. Where this con- 
dition obtains, such a substitute may well be as popular in times of low 
leather prices as in times when leather demands a high price, since style 
is the overwhelming reason for its use. 

The competition from these substitutes has been keen during the 
past few years and will undoubtedly continue to be of such extent for 
the period of the war and immediately afterwards, or, in a word, while 
leather prices remain high. The present scale of prices is forming an 
urnbrella under which substitutes are readily salable, but when leather 
prices slump, and the margin between them and substitute prices 
decreases, the competition of the substitutes will be felt more severely. 
It is foolish to suppose that these substitutes as composed at present 
can ever take the place of leather, but as a supplement to leather they 
undoubtedly have a large field. Their influence now is most beneficial, 
as it serves to steady the leather market and to prevent leather prices 
from climbing to even more lofty heights. 



THE TANNING INDUSTRY 



41 




42 



'1' H K 'i' A N N 1 N G INDUSTRY 




THE TANNING INDUSTRY 



4:5 




44 



THE T A N N 1 N (7 1 N D I' S T li Y 



HJHTr::r;] IMPORTS OF SHEEPSKINS 

TOTAL 

GREAT BRITAIN 

BRITISH OCEANIA 

ARGENTINA 

RUSSIA 




THE TANNING INDUSTRY 



45 



eg:: 



:V:. 



IMPORTS OF GOATSKINS 

TOTAL 

EAST INDIES 

CHINA 

BRAZIL 

<^-^^o UNITED KINGDOM 
RUSSIA 



—X- 



WM\^MW 



I,- 



:]1± 



::3t: 



m 



-£ 



:'[]»: 



-Ait-.-.-.-. 



-.i".l-. 



:$2: 



i-^ 



.-.ii: 



;;:5: 



»*c^ij_ 



'■list it fit* 



.-u. 



t-i 



# 



"Sff 



llliL 



I? 



it!': 



ip^i 



I 
■ 1 



t- J-i 



M 



U±iJ 



■I() 



■nil': 'I'ANNINC INDUSTUV 



ORGANIZATION OF THE DOMESTIC MARKET 



PACKER HIDES 



PACKFP 



BROKER I 



TA N N E R 



THE TANNING INDUSTRY 



47 



ORGANIZATION OF THE DOMESTIC MARKET 

CONTINUED 



COUNJTRV HIDES 




48 



THK TANNING INDrsTRY 



ORGANIZATION 



OF THE 



DOMESTIC SMEEPSKIN MARKE" 



COMMISSION MAN 




TANNER I 



THE TANNING I N D ir S T R Y 



49 



ORG AN12 ATlOtJ Of" FOREIGN HIDE MARKETS 



EUROPEAN 




50 



'Pill', tank'inm; iMnrsTUV 



ORGANIZATION OF FOREIGN HIDE MARKETS 
CONTINUED 



SOUTH AMeRlCAN 




TANN£R [ 



TIIF, TAN N INC, INDl'STRV 



51 




52 



TIIK TANNING INDUSTRY 



rr—rrrrnT 



mm^ 



VALUE OF LEATHER PRODUCED BY STATES, 1914 




Me 



PENNSYLVANIA 

WISCONSIN 

MASSACHUSETTS 

NEW JERSEY 

NEW YORK 

MICHIGAN 

ILLINOIS 

WEST VIRGINIA 

DELAWARE 

OHIO 

CALIFORNIA 

VIRGINIA 

NORTH CAROLINA 

KENTUCKY 





tfe#ffinnriliiin;rnFfnHn#fEHt^fiFfnfTTiil"i?T^m#;^ 



THE T A N N I N (I 1 N D If S T R Y 



53 



ORGAN I Z AT ION OP THE DOMESTIC LEATHER MARKET 




50L£ CUTTEP [ | SELLING ORgj'N [ 



f=lNDlNG5 JOBBER | 



FINDlNOjS RETAILER 




jobber") — ^ CQM'N r-lAt-, I 



54 



THE TANNING INDUSTRY 



ORGAMIZATION OP TME FOREIGN LEATHER MARKET 




T u R E R I 



T H K T A N N I N ( ; I N D IT S T R V 



55 




56 



TllK TANNING INDUSTRY 




THE TANNING INDUSTRY 67 



Appendix A 
Appendix B 
Appendix C 



68 



THE TANNING INDUSTRY 



Appendix A 



Imports 
Total a 





1908 
Lbs. 


1909 

Lbs. 


1910 

Lbs. 


1911 

Lbs. 


Total 


328,446,882 


572,776,503 


460,607,078 


424,876,67^ 


Cattle Hides 


137,922,575 


279,044,262 


221,969,098 


170,649,23^ 


Calfskins 




47,062,988 


53,157,553 


82,631,18( 


Sheepskins 


20,138,987 


63,711,930 


59,669,263 


57,434,46( 


Goatskins 


75,857,983 


115,167,176 


100,719,480 


91,064,556 




Since July 1 







Imports of Cattle Hie 



Argentina 


30,097,803 


75,716,335 


57,534,654 


50,046,895 


Canada 


25,564,022 


32,375,820 


29,955,538 


27,818,650 


Mexico 


15,024,716 


25,389,620 


31,633,682 


22,259,302 


France 


10,365,000 


22,261,677 


12,196,842 


12,688,160 


Uruguay 


8,269,637 


23,954,701 


14,284,726 


6,518,688 



Imports of Calfski 



Russia 






15,387,689 


17,266,289 


Germany 






8,735,764 


20,697,377 


Netherlands 






3,018,501 


7,372,601 


France 






2,262,744 


4,962,412 


Other Europe 






18,047,073 


18,429,558 


South America 






4,750,308 


4,673,520 



THE TANNING INDUSTRY 



59 



Hides and Skins 



By Classes 



1912 

Lbs. 


1913 

Lbs. 


1914 

Lbs. 


1915 

Lbs. 


1916 

Lbs. 


615,105,439 


497,879,316 


556,194,541 


646,271,307 


727,010,405 


303,530,775 


223,564,715 


308,050,216 


408,632,111 


404,901,341 


114,859,364 


76,454,032 


66,915,534 


48,914,776 


62,657,181 


68,230,511 


68,205,805 


65,943,961 


75,086,576 


101,530,219 


95,323,388 


89,677,275 


75,855,063 


79,287,484 


104,226,005 











by Principal Countries 



101,241,806 


45,243,705 


93,986,530 


145,414,537 


136,285,332 


34,411,348 


48,011,196 


40,351,186 


30,576,663 


24,998,659 


30,712,246 


28,457,714 


37,750,732 


50,808,523 


32,374,236 


19,727,143 


17,792,387 


16,376,786 


3,315,144 


1,882,552 


12,414,648 


3,398,522 


16,722,951 


40,051,832 


39,905,328 



by Principal Countries 



35,618,531 


24,329,173 


9,368,067 






21,771,692 


14,189,723 


10,592,526 






8,494,641 


8,322,114 


11,313,504 


4,428,407 


6,557,310 


6,243,197 


3,706,051 


6,494,750 


6,632,629 


5,726,937 


23,724,798 


14,067,790 


17,386,087 


11,525,627 


14,079,800 


5,060,281 


1,156,199 


2,690,292 


7,291,488 


9,538,148 



60 



THE TANNING INDUSTRY 



Appendix A — Continued 
Imports of Hides and Skins 



Imports of Sheepskii 



United Kingdom 




32,272,834 


27,839,190 


27,500,830 


Russia 




2,634,250 


3,518,556 


4,812,119 


Br. Oceania 




7,495,275 


8,444,966 


6,051,497 


Argentina 




4,261,522 


4,999,931 


5,857,612 



Imports of Goatskii 



East Indies 


28,136,982 


51,590,855 


42,500,600 


41,797,305 


China 


7,121,813 


9,540,407 


13,072,066 


10,066,201 


Brazil 


4,073,443 


4,256,816 


3,651,088 


2,818,571 


United Kingdom 


3,238,923 


4,359,906 


4,734,652 


5,196,655 


Russia 


3,607,616 


5,899,312 


4,420,607 


3,256,961 



THE TANNING INDUSTRY 



61 



by Principal Countries 



27,709,604 


28,563,976 


23,608,815 


29,273,143 


24,897,795 


8,557,617 


7,730,534 


7,197,696 


22,840 




6,705,597 


8,626,973 


9,960,855 


11,689,728 




6,368,068 


4,547,911 


6,753,032 


10,157,619 


17,987,619 



by Principal Countries 



42,448,889 


37,575,746 


30,260,161 


35,579,480 


43,597,174 


7,266,489 


8,406,743 


6,916,607 


9,589,951 


15,384,557 


3,772,538 


3,998,172 


3,465,847 


6,256,859 


5,400,122 


5,564,716 


5,595,240 


4,837,778 


5,131,795 


3,845,270 


7,282,897 


6,845,757 


4,647,884 


48,180 





62 



THE TANNING INDUSTRY 



Appendix B 



Tanneries and Leather Production by Principal 
States, 1909 





No. 
Estab. 


Wage Earners 


Value of Products 




Av'ge No. 


% 


Rank 


Amount 


% 


Rai 


Pennsylvania 


163 


14,008 


1 




$77,926,321 


23.8 


1 


Wisconsin 


32 


7,548 


3 




44,667,676 


13.6 


2 


Massachusetts 


132 


10,252 


2 




40,002,079 


12.2 


3 


New Jersey 


86 


5,560 


5 




28,430,955 


8.7 


4 


New York 


109 


5,688 


4 




27,642,383 


8.4 


5 


Michigan 


24 


2,291 


8 




15,331,104 


4.7 


6 


Ilhnois 


29 


3,001 


7 




14,911,782 


4.5 


7 


West Virginia 


20 


1,571 


11 




12,450,592 


3.8 


8 


Delaware 


16 


3,045 


6 




12,079,225 


3.7 


9 


Ohio 


36 


1,884 


9 




10,127,836 


3.1 


10 


California 


40 


1,398 


12 




9,336,545 


2.9 


11 


Virginia 


39 


1,590 


10 




8,266,850 


2.5 


12 


North Carolina 


39 


832 


13 




5,415,495 


1.7 


13 


Kentucky 


18 


630 


14 




4,240,795 


1.3 


14 



64 



THE TANNING INDUSTRY 



Appendix C 



Exports 



Exports of 





1908 
Lbs. 


1909 

Lbs. 


1910 

Lbs. 


1911 

Lbs. 


United Kingdom 


27,330,224 


27,453,801 


33,014,945 


36,485,637 


Other Europe 


1,296,574 


2,032,135 


2,445,376 


2,119,325 


Japan 


2,203,945 


2,144,574 2,011,435 


2,869,142 



Exports of Upper 



y 





1908 

Sq. Ft. 


1909 

Sq. Ft. 


1910 

Sq. Ft. 


1911 

Sq. Ft. 


United Kingdom 






2,536,596 


39,776,473 


Germany 






594,614 


12,014,927 


Netherlands 






797,687 


10,180,861 


Other Europe 






1,085,537 


14,750,321 




Since July 1 









Exports of Upper 





1908 

Sq. Ft. 


1909 

Sq. Ft. 


1910 
Sq. Ft. 


1911 

Sq. Ft. 


Total 






4,263,399 


7,987,354 




Since July 1 









THE TANNING INDUSTRY 



65 



of Leather 



Sole Leather 



1912 

Lbs. 


1913 

Lbs. 


1914 
Lbs. 


1915 

Lbs. 


1916 

Lbs. 


38,150,837 


26,588,513 


48,070,485 


46,584,175 


50,754,672 


1,851,416 


2,150,554 


1,466,828 


29,441,458 


25,606,541 


2,642,771 


1,322,553 


589,406 


1,190,848 


4,721,026 



Leather — Kid 



1912 

Sq. Ft. 


1913 

Sq. Ft. 


1914 

Sq. Ft. 


1915 

Sq. Ft. 


1916 

Sq. Ft. 


47,297,131 


39,486,018 


39,425,207 


45,694,124 


52,313,361 


14,374,556 


15,410,380 


7,239,688 






10,325,473 


8,138,722 


3,835,742 


7,130,799 


6,593,583 


14,943,414 


13,835,658 


11,290,401 


24,638,671 


27,354,458 













Leather — Calfskins 



1912 

Sq. Ft. 


1913 

Sq. Ft. 


1914 

Sq. Ft. 


1915 

Sq. Ft. 


1916 

Sq. Ft. 


8,377,525 


9,576,669 


7,162,956 


14,896,591 


21,226,840 













